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The Government today (July 9) launched a three-month public consultation on the conceptual framework of a legislative proposal on the anti-money laundering regulatory regime in respect of the financial sectors. The consultation will last until October 8, 2009.
A spokesman for the Financial Services and the Treasury Bureau (FSTB) said, ˇ§This legislative initiative is a direct response to the call from the inter-governmental body which sets international standards on the anti-money laundering regime, the Financial Action Task Force (FATF), that Hong Kong should provide statutory backing and appropriate sanctions for customer due diligence and record-keeping requirements for financial institutions and put in place an anti-money laundering regulatory framework for remittance agents and money changers. The proposal is intended to address the deficiencies identified by the FATF in Hong Kongˇ¦s anti-money laundering regime in its evaluation completed in 2008 and will help maintain Hong Kongˇ¦s status as an international financial centre.ˇ¨
The conceptual framework sets out the financial institutions which would be subject to the proposed legislation; the customer due diligence and record-keeping obligations that are required to be met; the liability and offence for breaches of such obligations; the powers of the regulatory authorities in supervising compliance with appropriate checks on the exercise of such powers; criminal and supervisory sanctions for breaches of the obligations; and a proposed licensing system applicable to entities engaging in remittance and money changing services for anti-money laundering regulatory purpose.
Following are the key elements of the proposed legislation:
* prescribing the customer due diligence and record-keeping requirements for financial institutions, including banks and deposit-taking institutions, licensed corporations regulated by the Securities and Futures Commission, insurance companies and intermediaries on long term insurance business, as well as remittance agents and money changers;
* providing appropriate powers to the regulators to supervise compliance, subject to suitable checks;
* providing for criminal sanctions as well as supervisory sanctions, with the establishment of an independent statutory appeals tribunal; and
* introducing a licensing system for remittance agents and money changers for anti-money laundering regulatory purpose, to be administered by the Customs and Excise Department.
ˇ§We will solicit the views of the relevant trade bodies and professional organisations, including the relevant advisory boards and committees, trade associations and remittance agents and money changers on the proposed conceptual framework. We will, in conjunction with the relevant financial regulators, arrange consultative sessions for concerned financial services groups during the consultation period,ˇ¨ the spokesman said.
Details about the schedule for the consultative sessions are available on the website (www.fstb.gov.hk/fsb/aml/eng/consultation/consultation.htm). Members of the public are welcome to join these sessions.
ˇ§We will take into account the views and comments received during the consultation period in drawing up the detailed legislative proposals. We aim to be in a position to conduct another round of consultation on the detailed legislative proposals towards the end of this year. Our tentative plan is to introduce the bill into the Legislative Council in the second quarter of 2010,ˇ¨ the spokesman said.
The spokesman added, ˇ§We look forward to receiving views from the general public, in particular practitioners in the concerned financial sectors, during the consultation period.ˇ¨
The consultation document is available on the above website. Views and comments can be sent to the FSTB by post (Division 7, Financial Services Branch, Financial Services and the Treasury Bureau, 18/F, Tower I, Admiralty Centre, 18 Harcourt Road, Hong Kong) , or by e-mail to aml_consultation@fstb.gov.hk or by fax to 2865 6736 before or on October 8, 2009.
Ends/Thursday, July 9, 2009
Issued at HKT 16:31
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